Indian Steelmakers Gain Strength

Prices Surge as Growing Middle Class Drives Demand

By

Vibhuti Agarwal

Updated May 17, 2007 12:01 a.m. ET

NEW DELHI -- Shares of India's steelmakers are proving buoyant.

Rising global steel prices, propelled by China's demand, have lifted the profit margins for many of India's steel companies. But beyond that, fund managers say it's not too late to look at certain Indian steel stocks, despite hefty gains in their share prices.

The reason: Steel is among the sectors that stand to benefit most from India's own continuing economic...